The U.S. Department of Labor has filed suit against tech giant Oracle for discriminatory employment practices. The Department of Labor specifically states that the company has "a systemic practice" in place of paying white male workers more than others in the same role, including "women, African American and Asian employees."

The suit also alleges that Oracle favors Asian workers in its recruitment for technical roles, which resulted in discrimination in its hiring practices against non-Asian job seekers. The suit is being brought by the U.S. Department of Labor because it is a federal contractor, providing services, software and hardware to the U.S. government. Federal contractors are required to maintain equitable and fair hiring practices.

For its part, Oracle denies the claims in an issued statement:

"The complaint is politically motivated, based on false allegations, and wholly without merit. Oracle values diversity and inclusion, and is a responsible equal opportunity and affirmative action employer. Our hiring and pay decisions are non-discriminatory and made based on legitimate business factors including experience and merit."

Oracle's claim that the suit is "politically motivated" may refer to the appointment of co-CEO Safra Catz to Donald Trump's presidential transition team, as was announced in December.

Should Oracle be found to have committed wrongdoing in this case, it could face the cancellation of all current government contracts, as well as debarment.